Savoy Equity Partners, a Texas based multifamily focused owner and developer, is launching a strategy specific value add opportunity fund called Savoy Income Fund I, the fourth opportunity zone fund raised by the sponsor.
Savoy Equity Partners, a Texas based multifamily focused owner and developer, is launching a strategy specific value add opportunity zone fund called Savoy Income Fund I, the fourth opportunity zone fund raised by the sponsor.
The vehicle seeks to raise a minimum of $100 million in equity from accredited investors to fulfill the equity commitments of the first three controlled investments with the ability to add two-three more.
Created in 2017, Opportunity Zones were created to facilitate investment in economically depressed areas throughout the country. Qualified investors in these specific census tracts are eligible for tax treatment benefits on their initial investment and throughout the life of the hold period.
Savoy Income Fund I will raise funds for investment in identified existing assets located in Dallas Fort Worth and Atlanta, as well as additional identified investments in the major Texas markets and the surrounding Atlanta area. By investing in existing assets, the fund will seek to provide investors distributions earlier in the fund life and eliminate some risks associated with ground-up development. In addition, Savoy is in communication with the housing authorities in each location to help create long-term affordable housing options.
To date, Savoy has successfully deployed three opportunity zone funds in Texas which are in various stages of development/redevelopment, making this the fourth fund in the company’s history. Through the confluence of stabilized and moderate value add properties with the opportunity zone tax benefits, Savoy believes there is both a significant return and cash distribution benefit to the fund structure.